Interesting LHX Put And Call Options For March 2026

StockOptionsChannel outlines two income-oriented option plays on L3Harris (LHX): selling the March 2026 $290 put (bid $11.90) would obligate purchase at $290 but produce a net cost basis of $278.10 versus the current $291.80, is roughly 1% OTM with a 56% chance to expire worthless and would generate a 4.10% cash yield (15.29% annualized) if it does; alternatively, selling the $300 covered call (bid $10.70) against shares bought at $291.80 would cap upside at $300 for a 6.48% total return if called, is ~3% OTM with a 54% chance to expire worthless and would add a 3.67% yield boost (13.66% annualized). Both contracts show implied volatility near 26% versus trailing 12‑month realized volatility of 22%, implying only modest option premium, and StockOptionsChannel will monitor and publish changing odds and contract histories on its site.

Analysis

The March 2026 $290 put on L3Harris (LHX) is bidding at $11.90, which obligates purchase at $290 and creates an effective cost basis of $278.10 versus the current $291.80 share price. That put is approximately 1% out-of-the-money with analytics estimating a 56% probability it will expire worthless; if it does, the premium equates to a 4.10% cash return or 15.29% annualized (labeled YieldBoost by Stock Options Channel).

The March 2026 $300 call bids $10.70 and, if sold as a covered call against shares purchased at $291.80, would cap proceeds at $300 for a 6.48% total return if assigned. That strike sits ~3% out-of-the-money with a 54% chance to expire worthless and would provide a 3.67% immediate premium boost (13.66% annualized) while leaving material upside exposure if shares rally beyond $300.

Implied volatility on both contracts is ~26% versus a trailing 12‑month realized volatility of 22%, indicating only modest option premium; Stock Options Channel will track changing odds and contract histories. Investors must weigh assignment risk, the exclusion of dividends in the quoted returns, transaction costs, and position sizing given the March 2026 time frame and the stated probabilities.

Key Decisions for Investors

• Consider selling the March 2026 $290 cash-secured put only if you are comfortable acquiring LHX at an effective $278.10 basis and size the position to the required cash commitment given a 56% chance of expiration worthless
• If already long LHX, consider selling the March 2026 $300 covered call to collect $10.70 for a 6.48% capped return, but be prepared to forgo upside above $300 and to accept assignment
• Monitor implied volatility (≈26%) versus realized volatility (22%) and the odds that Stock Options Channel publishes; reduce exposure or employ hedges if implied volatility compresses or assignment probabilities move unfavorably
• Factor in broker commissions and the fact that the quoted returns exclude dividends when calculating net expected return and risk-adjust position sizing accordingly